HW chap 3-2

Usealeadingzeroandincludeanegativesignifnecessary 0

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e values of A and B? Instructions: Enter your answers as whole numbers. A = 80 ± 1 . B = 10 ± 1 . rev is ed jrl 08­09­2011 Explanation: Derive the linear demand curve Step 1: Solve for (–B) using elasticity of demand along with the given values for P and Q. Step 2: Solve for A using the known values for Qd , B, and P. 9. awar d: 16.70 out of 16.70 points Suppose the annual demand function for the Honda Accord is where PA and PC are the prices of the Accord and the Toyota Camry, respectively (in thousands), and PG is the price of gasoline (per gallon). a. What is the elasticity of demand for the Accord with respect to the price of a Camry when both cars sell for $20,000 and fuel costs $3.00 per gallon? http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 7/8 1/22/2014 Assignme nt Pr int Vie w Instructions: Round your answer to 1 decimal place. Include a negative sign if necessary. 500. 0 . b. What is the elasticity with respect to the price of gasoline? Instructions: Round your answer to 2 decimal places. Use a leading zero and include a negative sign if necessary. ­0. 08 . c. Which of the following statements is correct about the market for Honda Accords? The Cam ry is a substitute and gasoline is a com plem ent. rev is ed jrl 08­09­2011 Worksheet Section: Elasticities of Demand and Supply Suppose the annual demand function for the Honda Accord is where PA and PC are the prices of the Accord and the Toyota...
View Full Document

Ask a homework question - tutors are online